TaxTMI 
TaxTMI 
2017 (5) TMI 63
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....as erred in in law and on facts in directing the Assessing Officer to allow the Assessee's claim for deduction of Rs. 45,47,315/- u/s. 80IB(10) of the IT. Act. 1b). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in in law and on factsto ignore the fact that the plots of land were transferred by one Shri Natvarbhai Ishwarbhai Patel to various individuals with Assessee carryingout only construction activity as per individual construction work deed between Assessee & individuals. 1c). The Ld. Commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in in law and on facts to ignore the fact that expenses for basic & common infrastructure like land development, land escaping, gardening, plastering of Roads, compound wall, entry gate, security cabin, water supply, electric connection, marking of plots etc., were borne by the land owner which clearly establishes the fact that Assessee firm was only a work contractor and not 'developer' to be eligible for deduction u/s. 80IB(10) of the IT. Act." We come to above latter appeal and notice that the Revenue's grievance in the same is identically pleaded and the only difference is that of the disal....
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....rat High Court. The A.O. further emphasized that inclusion of explanation in respect of "works contract" is justify his stand. As against these arguments the appellant's main thrust were on following arguments. (i) The appellant fulfill all the eligible condition as required u/s. 80IB(10) of the Act. The appellant developed a housing project on a land admeasuring more than 1 Acre with due permission from local authority as per approved plan and none of the dwelling unit is having area admeasuring more than 1500 sq. ft. The building use permission is also available. The appellant has taken all the risk of development of project right from the purchase of land, conceptualization and plan of the project, getting technical, statutorical and other permission from various authorities, arranging the man, material and finance for execution of development, enrolling the members/purchaser for the project, negotiating with them, collection of price and other such work for sale of dwelling unit of project etc. The claim of appellant is duly supported by a certificate in 10CCB from a Chartered Accountant for the claim and eligibility u/s. 80IB (10) of the Act. The appellant as per the....
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....nd as summarized by Hon'ble ITAT Ahmedabad in various decisions including ACIT Cir.2, Baroda v. M/s.Shikhar Developers. All these details and explanations are verifiable from the details and submission, made by appellant before A.O. and also before me. This analysis also reflects that* appellant fulfilled all the eligible conditions for claim of deduction u/s.80IB (10) of the Act. (iii) I am inclined to accept the contention of appellant that in section 80IB(10) of the Act there is no condition regarding the ownership of land being developed and there is no requirement in the sub-section that approval of housing project by a local authority and B.U. permission should be the name of developers. It is only the profit derived from building and developing a housing project on minimum one acre of land with each unit below 1500 sq. ft. with other time limitation is entitled for deduction u/s.80IB (10) of the Act. It is therefore a holistic view about the provision with its objective has to be taken rather considering the provisions in a piece meal manner. (iv) I have examined the facts of the present case in the light of the decision in the case of M/s. Radhe developers (supra)....
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....project for which the plans were approved and permission to use was obtained in respect of the same property in question, the assessee incurred all the expenditure for development of the housing project and received the entire sale consideration from the buyers. It would, therefore, prove that the assessee undertaken to develop the building housing project in question. These facts would show and prove that the assessee made the payments of sale consideration of the property in question and the details of the sale proceeds received from the buyers have also been mentioned in the total sale proceeds in the books of accounts of the assessee. The facts of the case and evidences on record would prove that the assessee entered into development agreements and agreement to sell with the purchaser for consideration. All the responsibilities for carrying out construction, permission and development of the project lie with the assessee. The real owner of the land i.e. landowner was only to co-operate with the assessee in carrying out the development and to execute necessary documents whenever required by the assessee as a developer. The landowner had handed over physical possession of the lan....
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.... am of the view the issue is now fully covered in favor of the assessee for grant of deduction u/s 80 IB(10) of the IT Act because the assessee has acquired dominant right over the land and has developed the housing project by incurring all the expenses and taking all risks involved thereof. The crux of the matter would be that assessee has acquired the land in question and has developed the housing project at its own cost as per the requirement of section 80 IB (10) of the IT Act. Hon'ble supreme court in the case of C.I.T. -1 Ahmedabad Gujarat Vs. B. Nanji Enterprise Ltd. rejected department's petition for special leave in appeal (civil)...../2012 CC 21333/2012 arised from the order dt. 13/12/11 in ITA No. 1498/2008 of Hon'ble Gujarat high court vide order dt. 07/12/12. Further in the case of ACIT (OSD) wd 5(2) Baroda Vs. M/s Someshwar Developers also SLP of the department arising from the judgment and order dt. 11/01/2012 in ITA No. 1300/2008 of Hon'ble Gujarat high court, The Hon'ble Supreme Court after condoning delay, declined to interfere and dismissed the SLP of the department. Therefore,I am of the view the assessee would be entitled for deduction u/....